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A flat file contains records that have no structured interrelationship. A flat file typically consists of a text file, from which all word processing or other structure characters or markup have been removed.
You can sepecify the code page for flat files when you create the flat file connection. Code page 1252 is used by the Latin1 collations in SQL Server so you won't have problems if you specify code page 1252 (assuming the file was created with that code page) and the target collation uses code page 1252 too.